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Section 375 ITEPA 2003

The deductions described at EIM35030Ìý²¹²Ô»å EIM35050 can only be given for journeys undertaken within a period of five years beginning with a date that is a qualifying arrival date in relation to the employee.

Conditions

A date is a qualifying arrival date in relation to a person if:-

• it is a date on which the person arrives in the United Kingdom to perform duties of an employment from which the person receives earnings for duties performed in the United Kingdom and either condition A or condition B is met:
  • condition A - the person has not been in the United Kingdom for any purpose during the period of two years ending the day before that date
  • condition B - the person was not resident in the United Kingdom in either of the two tax years preceding the tax year in which the date falls (see example below).

Conditions A and B apply separately. An employee may achieve a qualifying arrival dateby satisfying either one or the other.

An individual who is a qualifying new resident will meet Condition B on their year of arrival as they will have been non-resident for a period of 10 years prior to their arrival in the UK. However, the conditions of a qualifying new resident extend up to a maximum four tax years and so they will not be able to claim a deduction in their fifth year of tax residence. 

Points to note regarding condition B

Where an employee satisfies condition B in respect of more than one arrival in a taxyear, the date of the earliest arrival will be the qualifying arrival date.

Condition B requires the employee to be not resident in either of the two tax years that precede the tax year of arrival not both.

Employees who do not become resident in the United Kingdom in the tax years in which they come to perform duties in the United Kingdom may have a qualifying arrival date in each tax year in which they come.

Example

Condition B is linked to tax years whereas condition A is not. Anna arrives to the UK from Germany on 6 April 2025 for the first time before leaving on 1 February 2026. Anna is UK resident in 2025-26 and also a qualifying new resident. Anna does not return to the UK until 25 February 2028. As it is three years since her first year of arrival after a period of 10 years as a non-resident, she remains a qualifying new resident. Anna meets condition A as she has not been in the UK for any reason for a period of two years. However, she would not have met condition B. She was non-UK resident in 2026-27 but she was UK resident in 2025-26 and therefore one of the two years preceding the date of her arrival back in the UK.